End March Exchequer Returns - Overall, solid start to 2014

02.04.14

END-MARCH 2014 EXCHEQUER STATEMENT

Tax Revenue up €415m (4.7%) on Q1 2013

Net Voted expenditure down €670m (6.1%) on Q1 2013

Overall, solid start to 2014

The Exchequer Statement for the first quarter of 2014 was published today (Wednesday, 2nd April 2014) by the Department of Finance and the Department of Public Expenditure and Reform. The Exchequer Statement shows that the Exchequer deficit at end quarter 1 2014 stood at €2,316 million, an improvement of €1,379 million compared to quarter 1 2013. Both total tax revenue of €9,232 million and the net voted expenditure outturn are in line with targets.

Commenting on the end-March Returns, the Minister for Finance, Mr. Michael Noonan, T.D. and the Minister for Public Expenditure and Reform, Mr. Brendan Howlin, T.D stated:

“The Exchequer returns for the first quarter of the 2014 represent a solid start to the year. In line with the improvement in the domestic economy, the reduction in the live register and the increase in employment levels, tax revenues are growing and expenditure on public services is within Budget.

Ensuring Debt sustainability is a key pillar of the Medium Term Economic Strategy and this Government is committed to reducing the deficit to under 3% by 2015. Significant progress has been made in restoring order to the public finances and today’s figures highlight that this remains a key priority into 2014. ”

With regard to the performance of tax revenues, Minister Noonan stated:

“Overall, the tax performance for the first quarter of the year is in line with expectations, with headline tax revenues coming in nearly 3% ahead of profile. VAT and excise duties are up 6.4% and 11.5% (yoy) respectively, reflecting the improvements in the domestic economy, retail sales and consumer confidence. Finally, and as profiled, we are starting to see the impact of strong employment growth feeding through into income tax receipts, which is up €129 million on last year”

Commenting on voted expenditure in the first quarter of 2014 Minister Howlin stated:

“I am pleased that spending is being managed by Departments in accordance with levels decided by Government in the Budget. Expenditure overall is on target and in line with expectations. It is, however, early in the year and the Government is aware of the continuing need to keep overall expenditure on profile.”